• Transaction / Assets
    BP Acquires 65 Gas Stations in Spain from Avenue Capital and JZ International
  • Seller
    Avenue Capital and JZ International
  • Buyer
    BP
  • € MM
    n/a

BP Acquires 65 Gas Stations in Spain from Avenue Capital and JZ International

2 October 2018

The British oil company has reached an agreement to take over 100% of Kingbook Inversiones Socimi and Petrocorner Retail, the owner and manager of gas stations in 21 provinces of Spain.

The oil company BP has reached an agreement with the venture capital funds Avenue Capital and JZ International for the acquisition of the Kingbook socimi and Petrocorner Retail, a company that owns and operates 65 gas stations spread across 21 provinces in Spain.

The operation has already been finalised, pending the corresponding regulatory approvals, as confirmed by official sources at BP.

Kingbook Inversiones, 60% owned by GL Europe REIT (Avenue), with the remaining 40% held by JZ Real Estate (JZI), both vehicles domiciled in the Cayman Islands, was delisted from the Alternative Stock Market (MAB) on July 20, just one year after its debut.

Kingbook had already warned in June that it was conducting “very advanced” negotiations for the sale of 100% of the company. The firm had been building its portfolio since 2014.

Another source close to the operation said that DISA (Shell in the Peninsula), the Canary Islands oil company chaired by Demetrio Carceller (Damm), also considered acquiring the asset.

The service stations that will become the property of the company formerly known as British Petroleum are distributed between the north, the centre and the southeast of Spain. Specifically, the oil company chaired by Luis Aires in Spain will increase its presence in Asturias, Cantabria, Vizcaya, Guipúzcoa, Navarra, León, Burgos, Zamora, Valladolid, Ávila, Madrid, Valencia, Albacete, Alicante, Murcia, Jaén, Huelva, Málaga, Granada, Almería and the Balearic Islands.

BP is thus consolidating its position as the third largest fuel distributor in Spain, behind Repsol and Cepsa and ahead of Galp and Shell. With this agreement, BP will control around 700 service stations in Spain. In 2017, the company stated, within its expansion strategy, that it owned 648 total stations.

Until now, these gas stations were operated by Petrocorner, which has also acquired BP. According to Petrocorner’s website, the service stations are branded by Repsol, Cepsa, BP, Shell, Galp, Avia, while some are independent.

According to the latest accounts sent to the Mercantile Registry, Kingbook lost more than €1.5 million in 2017, compared to a loss of €1,733,446 in 2016.

Although the price of the transaction was not disclosed, the statement company submitted to MAB said that its assets were valued, according to the consultancy CBRE, at approximately 70 million euros (€40 million book value).

Avenue Capital has participated in several important operations in Spain. The US fund gave financial support to Quabit and is participating in the purchase of debt from Banco Santander’s Ciudad Financeira. In June, the fund acquired tile company Roig Cerámica (Rocersa).

Original Story: El Confidencial – Juan Cruz Peña

Photo: Reuters

Translation: Richard Turner

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